economy. it sounds so reasonable when you put it like that. let me tell you why it's not. right now while we've got a deficit, the people we are borrowing money from believe we will pay it back because we set out a tough plan to cut spending and to live within our means. that's why our interest rates are amongst the lowest in the world even though the deficit left us by labour was one of the highest in the world. if we did what labour wants and we water down our plane, the risk is that the people we borrow money from woodstock to question our ability and our resolve to pay off our debts. some might actually refuse to lend us any money at all. others would only send it to us at higher interest rates. that would hurt the economy and it would hit people hard. if you have a mortgage of 100,000 pounds, just a 1% increase in interest rates would

mean an extra thousand pounds to pay each year. so labour's plan to borrow more is actually a massive gamble with our economy and our future. it would squander all of the sacrifices we have already made. and let me put it like this. we are here because we spent too much and borrowed too much. how on earth can be answered be more spending and more borrowing? [applause] >> i honestly think that labour haven't learned a single thing. when they were in office the answer was always borrow more money. now they're out of office its borrow more money. whatever the day, whatever the weather, it is always borrow,

borrow, borrow. labour, the party of one mission, borrowing. [applause] >> there are times i wonder whether they know anything about the real economy at all. in the last week, ed miliband said about taxes, he described a tax cut as the government writing people a check. i hope you don't want, i just want to explain it for him. this is how it works. when people earn money, it's their money, not the governments money. it's their money. [applause] >> don't interrupt. i don't want to lose the thread.

[laughter] >> than the government takes some of it away in tax. so if we cut taxes, we are not giving the money. we're taking less of it away, okay? got it? [applause] >> and do you know what? while we are on a, who suffers when a wealthy businessman or operator moves to geneva? not him. it's those who want to work because the jobs come the investment, the growth will go somewhere else. [applause] we promised that those with the broadest shoulders would bear the biggest burden, and with as the rich will pay a greater share of tax in every year of this parliament. and in any one of the 30 years under labour, under labour. [applause]

we haven't forgotten what it was like under labour. we remember who spent our golden legacy, who sold our goal from who busted our banks, who smothered our business, the rack up our debts and who ruined our reputation, wrist our future. who did this? labour did this, and our country should never forget it. [applause] and to get our country unless, to give britain on the rise we need a whole new economy. more enterprise, more aspirational, and this is taking shape over the. we're getting back our entrepreneurial streak. last year the rate of new business creation was fast than any of the year in our history. let me repeat that. the race in which new businesses started was faster last year than ever before.

we are making things again. we had a trade surplus in cars for the first time in almost 40 years. and as such as the old industries that are growing. it's anyone's. we are never won an award for offshore wind. no one in the world for tidal power. we have the world's first investment green bank. britain on the rise. we are showing we can do it. look at the new investment. in the last two years, google, cisco, the big tech firms, they all set of new bases here. and we are selling to the world again. when i became prime minister i said to the foreign office, those indices you've got, turned them into showrooms for our cars, department stores for fashion, technology helps british stars. he our diplomats. and as william said in a fantastic speech, or the best diplomats on the globe, but you also need to be our country's sales force.

[applause] and when we look at what's happening come in just two years our exports to brazil up 25%, to china 40%, the russia of 80%. there are so many opportunities in this world.jut one business s really seizing them. it's run by a guy called alastair. he and his partner saw a world with almost 6 billion mobile phones with just 2 billion bank accounts. and they saw this huge gap in the market and they started a mobile banking firm, helping people in the poorest parts of the world manage their money and start new companies using their mobile phones. alastair has been with you on trade missions all over the world. and his business is booming. akin 2010 when we came to office, they employed about 100 people. now it's more than 700.

act than they were nowhere in africa, nowhere in asia. now they are the global player with 1 million new users every month. so don't let anyone tell us that britain can't make in this world. where the most enterprising of the nearing created dynamic nation on earth. [applause] and to those who question whether it's right for me to load up a plane with business people, whether we're flying to africa, indonesia, the goal for china, whether we're taking people from energy, finance, technology or yes, defense, i say this. there is a global out there to win contracts and in that battle i believe leading from the front. [applause]

but to get our economy on the rise there's a lot more we need to do. and, frankly, there's a lot more fight to be had. because there are too many people out there that i would call the yes, but no people. the want to say yes our businesses need to expand, but no, we can't reform plan. it's simple. for business to expand it needs places to build and it just takes too long. they will just build elsewhere. i visited a business the other day that wanted to open up a big factory right outside liverpool, but the council is going to take so long to prove the decision that they're now building the factory on the continent and is taking hundreds of jobs within. if we're going to be a winner in this global race, we have got to beat off the suffocating bureaucracy once and for all. [applause]

and then there are those who say yes, of course we need more housing, but no to every development, and not in my backyard. now look, house building isn't just a vital engine of our economy. it goes much, much wider, bigger than that. it's okay for my generation. many of us have got on the latter, but do you know the average age someone buys a home today without help from their parents? it is 33 years old. we are the party of homeownership and we cannot let this go on. so yes, we are doubling the discount of buying a primary house. were hoping for some buyers with 95% mortgages, and something else we need to do and that is except that we need to build a lot more houses in britain. there are people, young people who work hard. year after year, but they're

still living at home. they sit in their childhood bedroom looking out the window dreaming of a place of their own, and i want us to say you are our people, we will help you achieve your dreams. [applause] if we want our people to rise so britain can rise, we must tackle welfare. here are two facts. factor one, we spend 80 billion pounds a year on welfare for working age people. not pensions, just welfare for working age people. and that is one in eight of every pound that the government spends. fact two, more of our children live in households when nobody works and almost any other nation in europe. let me put it simply.

welfare isn't working, and this is a tragedy. our reforms are just as profound as those of beverage 60 years ago. he had this great evils to slay, squalor, ignorance, idleness and disease. here our minds. first, unfairness. what our hard-working people who travel long distance to get into work and pay their taxes me to think when they see families can individual families, getting 40, 50, 60,000 pounds of housing benefit to live in homes that these hard-working people could never afford themselves. it is an outrage and we're in it by capping housing benefits. [applause] the second evil, injustice. here is the choice that we give

our young people today. choice one, work hard, go to college, get a job, lived on, save up for a flat. and as i just said, that will feel like forever. choice number two, don't get a job, signed on, don't even need to produce a cd when you do sign on, get housing benefits, get a flat and then don't ever get a job or you will lose the housing benefit. we must be crazy. this is what we have done. now you have to sign a contract that says you do your bit and we will do ours. it requires you to have a real cd, and it makes clear, you have to seek work, you have to take work or you will lose your benefits. [applause] and we are going to look at

ending automatic access to housing benefit for people under 25. let me put it like this. if hard-working and people have to live at home while they work to say, why should be any different for those who don't? selects -- [applause] the next evil, bureaucracy. sign on, sign here, come back in a fortnight, repeat as required. what does this do for the guy who's been out of work for years, even decades, who is playing computer games all day living out some fantasy because he hates his real-life? for people like you got to do something new, and we are. the work program takes the money we're going to say from getting people off the doll and uses them to get them to work with proper turn. we're prepared to spend up to 14,000 pounds on one individual to get them into work. and already almost 700,000 people have got on to the work

program. so i want us to be clear in this, in british politics today it is this party that is saying no one is a write off, no one is hopeless. and let us be the party that shows there is ability and promise in each and every one of our citizens. [applause] and just one more thing on welfare. you know our work experience program that we give young people a chance to work in a supermarket, in a shop or an office? here's what one trade union official said about it. i quote, this scheme belongs back in the 19th century, along with oliver twist. it is nothing short of state-sponsored slavery.

what a snobbish, appalling, outdated wrongheaded attribute to the idea of work. we are not sending young people of chimneys. we're giving them a chance. we are not asking something of people. the women asked nothing of them. work isn't slavery. it's poverty that is slavery. and let it be us, the conservatives who lead the fight against poverty in britain today. [applause] >> help people rise, to help britain rise there is a third crucial thing we have to do. educate all our children. and i mean really educate them. not just pump up the grades each year. in math, and science come in reading we have fallen behind.

not just behind germany and canada, but behind estonia and australia, to. this is britain's real school board and it reads, must do better. now you've heard of pushy parents, al blowing their way to a better education for their children. this is a pushy government. and my approach is very, very simple. i've got two children in primary school, and i want for your children what i want for my. to go to schools where discipline is strict, where expectations are high, and where no excuses are accepted for failure. and i don't want great schools just a be the preserve of those that can pay the fees or by the nice house, i want those schools to be open to every child in every neighborhood. and the reason i know that every child can go to a school like this is because with this government, more and more new ones are opening. now, you've heard from some of

them this week, not just the 79th new preschools with over 100 more to come, but you've heard from some of the more 2000 academy's that we've helped to create. these are state schools but given all the freedoms and carrying all the high expectations of private schools. yes, that is my plan. millions of children sent to independent schools, independent schools in the state sector. [applause] >> it is a genuine revolution that's under way. the harris academy in packham, it is increase the number of students getting five good gses from 12% when he was under local authority control, almost 90% now. the transformation has been astonishing, and you know what?

the methods have been conservative. smart uniforms, teachers in suits, children taught physics, chemistry and biology. not soft options. children set by ability with excellent support, extra resources for those in need, but no excuses for slacking. and when you see as a parent schools like that, just have one question, why can't every school be that way? like in all our children have those chances? it's not because parents are not ambitious enough. most of these schools are massively oversubscribed. it's because the old educational establishment, the left wing local authority, the leader of the teacher unions, the labour party theorists, it's because they stand in the way. when we saw a badly failing school and wanted to turn into an academy, the label authority, the labour mp and the teacher unions all said no. with inspirational teachers and

parents, when they wanted to open preschools, the left wing establishment said no. when we proposed more pay for good teachers, getting rid of bad teachers, longer school days to help children learn, flexible school hours to help parents work, more stretching exams for those who are really able, less nonsense about health and safety, the left wing establishment has had just one thing, no. do you know why? when you ask them why is a school failing, why aren't the children succeeding, you hear the same thing over and over again. what can you expect from children like these? these children are disadvantaged. now, of course, we want to tackle every disadvantaged, but isn't the greatest disadvantage of all being written off by those so in hock to a culture of

low expectations that they don't know was like to be ambitious? to overcome circumstances to succeed on your own. it is that toxic culture of low expectations, that lack of ambition for every child which is held under country back. and i can tell you -- [applause] >> and let me tell you a thing or two about michael and i, we are not waiting for an outbreak of sanity and headquarters of the in ut. we're not waiting for some great embrace of aspiration and high reaches of labour before we act because our children cannot wait. so when people say please, slow down your education reforms so somehow adults can learn to adjust to them, i say no. i want more preschools, more academies, more rigorous exams,

more expected of every child at every school. and to those who say, and some do, he wants children to have the kind of education he had in his posh school. do you know what i say? yes, you're absolutely right. i want to a great school. i want every child to have that education. [applause] >> i'm not here to defend privilege. i'm here to spread it. [applause] >> i don't have a hard luck story. my dad, my dad, my dad was a stockbroker. [laughter] but it's only when your dad is gone that you realize not just

how much you miss him or how much he really loves them, but how much he really owes them. my dad interested me much more than i ever thought. he was born with no heels on his feet, with legs that are we're about a foot shorter than government to be. but he never complained even when he lost those legs later in his life. because this ability in the 1930s was such a statement, he was an only child, probably a lonely child. but my dad was the eternal optimist. to him a glass was always half full, usually with something very alcoholic in its. [laughter] and when i was a boy, i would never once going on a long walk with him in the village where we lived, and we walked past the church he supported all his life, and passed the village hall where he took part in an unbelievably long parish council meetings, and he told me what he was most proud of.

and it was simple. it was working hard from the moment he left school and providing a good start in life for his family. not just all of us, but helping his mom, too, when his father ran off. not a hard luck story, but a hard work story. work hard, family comes first, put back into the community. there's nothing complicated about me. i believe in working hard, caring for my family, serving my country. and there's nothing complicated about what we need today. this is still the greatest country on earth. we showed that again this summer, 22nd in world population, third -- but it's tough. these are difficult times. we are being tested. how will we come through it? again, it's not complicated. hard work, strong families,

taking responsibility, serving others. as i said on the steps of number 10 downing street before walking through that door, those who can should, those who can't we will always help. the job of this party, this government is to help bring out the best in this country. guest at our best we are unbeatable. we know britain can deliver because we've seen it time and time again. this is the country that invented the computer, defeated by nazis, started the web, solve the slave trade, unravel dna, fought off every and, therefore, a thousand years. we convinced the going to jump out of a helicopter. there's nothing we can't do. [applause] >> and we make britain the best place in the world to start a business, to grow business, to help the business take on the

world and win, yes. can we the people, the people invented the welfare state in the first place turn into something that rewards efforts, that helps keep families together, that really helps the poorest with the new start in life? yes. and can we take the schools and turn out students that will take on the brightest in the world? yes, of course we can. led us here in the saw, here in this government, together in this country make this pledge. let us build an aspiration nation. let us get britain on the rise. deficit, they don't, tough decisions taken, aspirations act all the way. we know what it takes to win, to win in the tough world of today, to win for all of our people, to win for britain. so let's get out there and do it. [applause]

[applause] ♪ ♪ [applause] ♪ ♪

♪ ♪ ♪ >> british prime minister david cameron speaking live to the conservative party conference. you can see the prime minister

answer questions from members of the house of commons when they return from the break next week. it's prime minister questions live next wednesday at 7 a.m. eastern here on c-span2. >> look at what president obama did on the budget, nothing except a borrow and spend. as a result of the president's abdication of leadership, as a result of seeing the most predictable economic crisis in our countries history and not fixing it, our credit rating was downgraded for the first time in our history. >> we laid out a $4 trillion debt reduction plan over the next 10 years, 4 trillion. we've already passed 1 trillion of it. ladies and gentlemen, these guys vote against everything. i really many. not only do they said they don't like our plan. i get that. you don't like our plan. what your plan? >> thursday congressman paul ryan and vice president joe biden will face off in the only debate. abc news from center college in

danville, kentucky, and you can watch and engage with c-span with a live debate preview at 7 p.m. eastern followed by two ways to watch the debate at nine. on c-span both candidates on screen the entire debate. and on c-span2 a multi-camera version of the debate all followed by your calls, e-mails and tweets. follow our live coverage on c-span, c-span radio and online at c-span.org. >> you're watching c-span2 with politics and public affairs. weekdays feature live coverage of the u.s. senate. on weeknights watch key public policy events. every week until it's nonfiction authors and books on booktv. you can see past programs and their schedules at our website, and you can join in the conversation on social media sites. >> the media research center recently celebrated its 25th anniversary with a gala at the national buig